What Is Debt Settlement?

Debt settlement is a process of negotiation with your unsecured creditors to convince them to give up their demands for the full repayment of your debts and instead to accept a lesser amount, relieving you of all obligation for further repayment once you have paid the lesser amount negotiated.

A separate negotiation is required for each of your creditors. The amount repaid and the time required to complete a debt settlement program depends upon many factors such as what you owe to whom, the amount of your payment delinquencies, your financial circumstances, the amount you can set aside monthly to fund negotiated settlements, your financial hardship, etc.

How Does Provanta Debt Settlement Work?

We complete a negotiating process on your behalf that is legal, ethical and feasible to get you the debt relief you deserve.

(1)

We assess your circumstances and propose how to proceed to get you the debt relief you deserve.

(2)

You enroll
in Provanta
Debt Settlement.

(3)

You make
monthly deposits
to accumulate
funds in your Settlement Account.

(4)

We intervene
with your creditors, handle their calls
and negotiate your settlements.

(5)

You complete
your Debt Settlement
Program and
live debt free.

We negotiate with your creditors until they accept that you are unable to repay the full balance outstanding due to a true financial hardship, and then agree to settle your debts for substantially reduced amounts.

Why Will Creditors Accept Less Than The Full Amount Due?

Creditors accept less than 100 cents on the dollar in settling debts when they conclude it is better for them to receive the lesser settlement amount now than to continue collection efforts in the uncertain hope of receiving more at some indeterminate time in the future, when any additional amount collected might easily have been consumed by legal and collection costs along the way.

While they try to avoid such losses, they view them as a cost of doing business. They know that maximizing their profits in a competitive marketplace means taking risks, which inevitably means some customers will be unable to repay the full amount due.

Provanta Corporation 1798 Technology Drive, Suite 200 San Jose, CA 95110
Phone: (408) 437-4330 info@provantacorp.com

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